Wednesday, November 19, 2008
The markets are breaking down again. The Dow lost 427 points on good volume. Advance/declines were over 10 to 1 negative. The base that I thought was forming is breaking. Unless we get a dramatic turnaround tomorrow to the upside, there is no base. My opinion was wrong again. The market is proving me wrong once again. How low will we go? We'll see. Gold was up 3 bucks but the XAU dropped almost 4 points. ABX was unchanged while GG and NEM lost around a buck. I'm looking at the gold shares calls again but it's risky. The dollar remains strong with all of the market uncertainty. There was also talk of deflation from the Fed today and that won't help the cause for gold. The Gold/XAU ratio doesn't seem to work anymore. It's a crazy time. GE lost 1 1/2 on very heavy volume. I did have an order in for GE calls but canceled it. Might try again tomorrow but I'm not sure. I'll mull it over tonight. I also had an order in for OEX calls at one point but canceled that as well when the market broke through support. 2 days for the November option cycle and I really should not try anything at this point. Mentally I'm feeling OK, slept well enough. Tomorrow is going to be an interesting day. It could get ugly. There may be some opportunities though. Hopefully I'm up for the challenge. There is nothing wrong with the sidelines though. Cash looks like it's king again. The selling seems like the liquidation we've seen since September. Everything goes just to raise cash. That seems to be the mode that is continuing.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment